Question

(Ans.
8. (Profit Distribution) P, Q and R were partners sharing in 2: 2:1. Q Retired and sold his
profit share for 60,000 out of which 20,000 were paid by P and remaining by R. The
profit of firm after Q's retirement was 6,60,000. Distribute the profit. profit distribution
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Answer 1

Answer:

New PSR = 8:7

Profit Distr. = 352000 to P & 308000 to R

Explanation:

New Profit share of P = 2/5 + 2/5×1/3 = 8/15

New Profit share of R = 1/5 + 2/5×2/3 = 7/15

Thus, divide the profit into the new PSR.